We at Fitch Solutions expect Indonesia to meet its fiscal deficit target of 1.8% of GDP for 2020, as outlined in the budget draft presented on August 16 and will mark a narrowing from the 2.0% deficit which we forecast in 2019.

Indonesia’s 2020 budget continues to focus on investing in human capital and

We maintain our forecasts for coal to continue playing a dominant role in Indonesia’s generation mix despite President Jokowi allegedly signalling intentions to shift away from coal, although this does represent some downside risk to our forecasts.

We believe that developing a sustainable coal phase-out plan will require

We expect robust expansion of Indonesia’s airports infrastructure sector over the next decade. Our forecast is underpinned by the anticipated growth in air traffic arising from a greater demand for domestic air travel and the expansion of low-cost carriers.